Brite-Strike Tactical Illumination Products, Inc (BSTK)

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https://stores.protrollsales.com/strike-lites/

https://stores.protrollsales.com/slct-902-strike-lite-cooler-tackle-box-led-lights-white-4-pack/


February 8, 2018


Brite-Strike Tactical Illumination Products Inc. (BSTK.PK) Investor Update.


Brite-Strike is a small technology company that creates the concept for a new product then takes that idea to design, CAD/CAM, production to finished product. We bring innovation to the LED based portable lighting category and invest on the front end with strong patent and trademark protection. We have seen the tactical flashlight category erode due to heavy pressure from low cost, low quality look alike lights from China that flooded the market with over 70 million units last two years.

Brite-Strike positioned itself with new LED based products starting five years ago with our APALS® or All Purpose Adhesive Light Strips and APALS-AIR® Active Illumination Reflective®. This product line is being marketed to the military in IR or Infrared and visible light for consumer use from hunting, fishing and camping.

While a number of tactical flashlight companies have had to close their doors, Brite-Strike while hurt by the loss of tactical light sales managed to survive. We did find some upside in that the switch used was believed to be infringing on a key patent. We entered into a licensing agreement with Telebrands and have entered into a joint lawsuit against Emson in Federal court which resulted in a settlement and royalties paid to BSTK.

We have designed a new line of torpedo shaped APALS® with grommets on each end for use by SEAL teams and now have a new line designed for fishing and have entered into a licensing agreement with Jimmy Houston “Americas Favorite Fisherman”. These lights can be used for all types of fishing and types of tackle. Jimmy Houston is very well known and liked at both Walmart and Bass Pro Shops and is helping us in getting meetings and placement. Walmart committed to a program for 2018 fishing season that did not come to fruition as the order would have to be placed through a wholesale jobber that had the contract to set and maintain the inventory on the shelf. We were able to substantiate rumors of financial trouble with this wholesale distributor and decided that the risk was too great. While a major lost sale is disappointing, the company did in fact file for bankruptcy so management chose the right course of action.

Brite-Strike has another new APALS® based product that launched last summer, our Brite-Rescue™ Emergency Signaling System for outdoor consumers and two all black IR versions, one for military pilots and the other an IR IED marker for convoys. Brite-Rescue™ is gaining traction and we have added a small water activated LED emergency strobe for 2018.

Sales for 2017 were around $531,000 vs $630,000 in 2016 for two main reasons; the influx of very low cost, as seen on TV tactical lights and military contracts that are still pending.

We reduced cost by giving up warehouse space, reducing personnel, cutting trade show expenses in 2016 which has carried over into 2017.

Brite-Strike signed a deal with Pro-Troll Fishing to provide co-branded OEM lights, the opening order was $38,000. Pro-Troll has strong distribution in the Northwest and Mid-West and is the technology leader in fishing products as flashers and dodgers. We also developed a new spring/pressure plate switch that will allow APALS® based products to go to depths beyond 200 feet and with light emitting from the back side.

We signed a contract with a new sales representative that has strong connections in the fishing and hunting markets and was instrumental in putting the Pro-Troll deal together.

We are currently in discussions with several of the top kayak and expedition grade cooler manufactures to provide APALS® and APALS-AIR® on a co-branded OEM basis for kayak or SUP safety lights and cooler lights.

The co-branded OEM strategy allows us to gain faster distribution and large orders for our APALS® with no risk as we require a 50% deposit with the order and balance prior to shipment. This also allows us to use the best practice to manage cash flow and has kept us debt free for 2017, expect the same for 2018.

We are also developing a few new niche products that we plan to introduce at ICAST in July 2018 that include: Lighted Fishing Pliers and a small magnetic light that can attach to any fishing pliers and other tools for various trades. As the target retail for the micro light is under $8.00 we see this as having potential as a big box retail item as well as strong sales on Amazon.

We are in discussions with several niche market companies to design and manufacture LED lighting systems based on our APALS® light strips.

Summary:

Brite-Strike has endured the onslaught of low cost, low quality LED flashlights in the past two years with innovative and patented products that are based on our APALS® and expect that both our branded and co-branded OEM business to grow in 2018. We have a new website built from the ground up and have an aggressive social media campaign to get the word out about our brand and products and expect 2018 to see solid growth in sales and profitability.[color=red][/color]


Brite-Strike Tactical Illumination Products Inc. (BSTK.PK) Investor Update.


Brite-Strike is a small technology company that creates the concept for a new product then takes that idea to design, CAD/CAM, production to finished product. We bring innovation to the LED based portable lighting category and invest on the front end with strong patent and trademark protection. We have seen the tactical flashlight category erode due to heavy pressure from low cost, low quality look alike lights from China that flooded the market with over 70 million units last two years.

Brite-Strike positioned itself with new LED based products starting five years ago with our APALS® or All Purpose Adhesive Light Strips and APALS-AIR® Active Illumination Reflective®. This product line is being marketed to the military in IR or Infrared and visible light for consumer use from hunting, fishing and camping.

While a number of tactical flashlight companies have had to close their doors, Brite-Strike while hurt by the loss of tactical light sales managed to survive. We did find some upside in that the switch used was believed to be infringing on a key patent. We entered into a licensing agreement with Telebrands and have entered into a joint lawsuit against Emson in Federal court which resulted in a settlement and royalties paid to BSTK.

We have designed a new line of torpedo shaped APALS® with grommets on each end for use by SEAL teams and now have a new line designed for fishing and have entered into a licensing agreement with Jimmy Houston “Americas Favorite Fisherman”. These lights can be used for all types of fishing and types of tackle. Jimmy Houston is very well known and liked at both Walmart and Bass Pro Shops and is helping us in getting meetings and placement. Walmart committed to a program for 2018 fishing season that did not come to fruition as the order would have to be placed through a wholesale jobber that had the contract to set and maintain the inventory on the shelf. We were able to substantiate rumors of financial trouble with this wholesale distributor and decided that the risk was too great. While a major lost sale is disappointing, the company did in fact file for bankruptcy so management chose the right course of action.

Brite-Strike has another new APALS® based product that launched last summer, our Brite-Rescue™ Emergency Signaling System for outdoor consumers and two all black IR versions, one for military pilots and the other an IR IED marker for convoys. Brite-Rescue™ is gaining traction and we have added a small water activated LED emergency strobe for 2018.

Sales for 2017 were around $531,000 vs $630,000 in 2016 for two main reasons; the influx of very low cost, as seen on TV tactical lights and military contracts that are still pending.

We reduced cost by giving up warehouse space, reducing personnel, cutting trade show expenses in 2016 which has carried over into 2017.

Brite-Strike signed a deal with Pro-Troll Fishing to provide co-branded OEM lights, the opening order was $38,000. Pro-Troll has strong distribution in the Northwest and Mid-West and is the technology leader in fishing products as flashers and dodgers. We also developed a new spring/pressure plate switch that will allow APALS® based products to go to depths beyond 200 feet and with light emitting from the back side.

We signed a contract with a new sales representative that has strong connections in the fishing and hunting markets and was instrumental in putting the Pro-Troll deal together.

We are currently in discussions with several of the top kayak and expedition grade cooler manufactures to provide APALS® and APALS-AIR® on a co-branded OEM basis for kayak or SUP safety lights and cooler lights.

The co-branded OEM strategy allows us to gain faster distribution and large orders for our APALS® with no risk as we require a 50% deposit with the order and balance prior to shipment. This also allows us to use the best practice to manage cash flow and has kept us debt free for 2017, expect the same for 2018.

We are also developing a few new niche products that we plan to introduce at ICAST in July 2018 that include: Lighted Fishing Pliers and a small magnetic light that can attach to any fishing pliers and other tools for various trades. As the target retail for the micro light is under $8.00 we see this as having potential as a big box retail item as well as strong sales on Amazon.

We are in discussions with several niche market companies to design and manufacture LED lighting systems based on our APALS® light strips.

Summary:

Brite-Strike has endured the onslaught of low cost, low quality LED flashlights in the past two years with innovative and patented products that are based on our APALS® and expect that both our branded and co-branded OEM business to grow in 2018. We have a new website built from the ground up and have an aggressive social media campaign to get the word out about our brand and products and expect 2018 to see solid growth in sales and profitability.